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Job Market Grows…in Low-Wage Industries

Friday, September 03, 2010
Job Market Grows…in Low-Wage Industries

The good news is that over the past seven months the private sector has added 630,000 jobs, demonstrating that there are some employment opportunities available to out-of-work Americans. The bad news is that that represents only 7.4% of the jobs lost in the last two years and many of these new positions are the lowest-paying.

 
Using data from the Bureau of Labor Statistics, the National Employment Law Project concluded that 76% of job growth has occurred in industries that pay $15 an hour or less and barely 6% has been in industries with median wages of more than $17.42 an hour.
 
Many of those who found work this year accepted positions in retail sales, as cashiers or in food preparation—industries with median wages below $10 an hour.
-Noel Brinkerhoff, David Wallechinsky
 
 
Ground Zero Mosque Developer Not the Greatest Landlord
Thursday, September 02, 2010
Ground Zero Mosque Developer Not the Greatest Landlord

Imam Feisal Abdul Rauf, the Muslim cleric who wants to build a $100 million mosque and community center near Ground Zero in New York City, has received a lot of attention relating to his religious beliefs, but there is another aspect of his life that is worth noting: as a longtime landlord, he has a history of operating poorly maintained housing complexes in New Jersey.

 
A review of city health documents by the Bergen Record uncovered “page after page” of complaints from tenants of Rauf’s. The problems ranged from failure “to pick up garbage, to rat and bedbug infestations and no heat and hot water.”
 
Rauf began acquiring and developing apartment buildings in the late 1970s. Since then he has been threatened with multiple foreclosure actions, all of which were settled before foreclosure. In October 2008, Rauf and his wife were sued for alleged fraud when they transferred ownership of an apartment building without telling the holder of their mortgage and then obtained a second mortgage from a bank using the new entity. The case was settled out of court before it went to trial.
 
Cynthia Balko of Union City, who has lived in one of Rauf’s buildings for years, found it hard to believe the same man intends to build and operate a world-class Islamic community center. “He can’t even repair the bells in the hallway. He doesn’t take care of his properties,” Balko told The Record. “But he’s going to take care of a mosque?”
 
The son of an Egyptian cleric, Rauf was born in Kuwait in 1948 and moved with his family to New York City when he was 17 years old. He became a citizen in 1980. After working as a teacher in Harlem and as a salesman, he began meeting Islamic scholars and soon embraced Sufism, a more mystical and open-minded branch of Islam than the one practiced by his father. He married an interior designer, Kashmir-born Daisy Khan, in 1997, the same year that Rauf founded the American Society of Muslim Advancement (ASMA). After the 9/11 attacks, the couple became visible representatives of moderate Islam, and in 2007 President George W. Bush’s State Department sent Rauf on speaking tours to the Middle East.
-David Wallechinsky, Noel Brinkerhoff
 
Imam in Mosque Debate Has History of Tenant Troubles (by Peter J. Sampson and Jean Rimbach, Bergen Record)
Feisal Rauf: Ground Zero's Lightning Rod (by Paul Harris, The Observer)
 
Rate of Those Who Lost Jobs But Found a New One Drops to Record Low
Thursday, September 02, 2010
Rate of Those Who Lost Jobs But Found a New One Drops to Record Low

The economy has produced yet another black milestone for unemployment. As of January 2010, 49% of the 6.9 million Americans who lost jobs they had held for at least three years had found new jobs—the lowest reemployment rate on record, according to the Bureau of Labor Statistics. This statistic deals with what are known as “displaced” workers—those who lost their jobs because “their plant or company closed or moved, there was insufficient work for them to do, or their position or shift was abolished.” Records on reemployment of displaced workers have been kept since 1948. Of those who did find work similar to the job they lost, 55% took a cut in pay.

 
This news followed another bleak labor report from earlier this year that revealed the percentage of long-term jobless had reached 40% by the end of 2009—the highest rate ever recorded by the federal government since 1948.
-David Wallechinsky, Noel Brinkerhoff
 
Displaced Workers Summary (Bureau of Labor Statistics)
Long-Term Unemployment Rate at Record High (by Noel Brinkerhoff, AllGov)
 
Banks Win Another Loophole to Gamble with Clients’ Money
Wednesday, September 01, 2010
Banks Win Another Loophole to Gamble with Clients’ Money

Banks can no longer gamble with their own money in the stock market as a result of new rules imposed by Congress. But there’s nothing that says financial institutions can’t take the same risks with other peoples’ money.

 
Proprietary trading is out for banks, but the new federal law does not address speculation done on behalf of a client. Institutions like JPMorgan Chase and Goldman Sachs are continuing the practice, and losing substantial sums in the process—$100 million each from April to July of this year.
 
Taking risks, even if it’s not the banks’ money, can be potentially dangerous for the industry and the economy. After all, it is exactly this type of market gambling helped produced the 2008 financial crisis.
 
“You can use client activity as a cover for basically anything you are doing,” Janet Tavakoli, head of Tavakoli Structured Finance consulting firm, told The New York Times. “It’s very problematic that losses like this are showing up. It’s a prime example of what the financial reform bill doesn’t address.”
-Noel Brinkerhoff
 
Despite Reform, Banks Have Room for Risky Deals (by Nelson Schwartz and Eric Dash, New York Times)
10-Year Anniversary of the Bill That Led to the Current Economic Crisis (by Noel Brinkerhoff and David Wallechinsky, AllGov)
 
Thousands in New Orleans Living in Abandoned Buildings
Tuesday, August 31, 2010
Thousands in New Orleans Living in Abandoned Buildings

Homelessness has nearly doubled in New Orleans since Hurricane Katrina, even though only 80% of the city’s population has returned since the 2005 disaster. An investigation by the non-profit Unity of Greater New Orleans organization also discovered thousands of individuals living in abandoned homes and commercial buildings—which total 55,000 to date, making New Orleans “the most blighted city in America.”

 
After going door-to-door visiting damaged structures over a two-year period, Unity concluded that there are 3,000-6,000 persons currently living in New Orleans’ abandoned buildings. Of this group, 87% are disabled, with 76% suffering mental illness and 58% a physical disability.
-Noel Brinkerhoff
 
 
Court Rules that Your Driveway is Not Private Property…Unless You’re Rich
Monday, August 30, 2010
Court Rules that Your Driveway is Not Private Property…Unless You’re Rich

Law enforcement can enter the driveways of people suspected of criminal behavior and attach tracking devices to their cars, all without a warrant, says a panel of judges on the Ninth Circuit Court of Appeals. The decision runs contrary to other legal opinions that have held the driveways and surrounding areas outside a home as private property and protected under the Fourth Amendment. But the legal rationale employed by the judges indicate that their decision applies only to driveways that are easily accessible—in other words, not to those blocked by a gate or fence, such as those commonly found outside the homes of people who are wealthy.

 
Chief Judge Alex Kozinski, a Ronald Reagan appointee, dissented vigorously from the decision, calling it “cultural elitism.” “There's been much talk about diversity on the bench,” he noted, “but there's one kind of diversity that doesn't exist. No truly poor people are appointed as federal judges.”
 
In the case in question, police, suspecting Juan Pineda-Moreno to be a marijuana dealer, entered his property in the middle of the night and attached a GPS tracking device to the underside of his car, which was parked in his driveway. The court ruled that because a driveway is open to strangers, such as children retrieving a ball that went under a car or pizza delivery men, it is also open game for the police. Kozinski, who grew up in communist Romania, called the actions of the police “creepy and un-American.”
 
According to Kozinski, “The very rich will still be able to protect their privacy with the aid of electric gates, tall fences, security booths, remote cameras, motion sensors and roving patrols, but the vast majority of the 60 million people living in the Ninth Circuit will see their privacy materially diminished by the panel’s ruling. Open driveways, unenclosed porches, basement doors left unlocked, back doors left ajar, yard gates left unlatched, garage doors that don’t quite close, ladders propped up under an open window will all be considered invitations for police to sneak in on the theory that a neighborhood child might.”
 
He added, “When you glide your BMW into your underground garage or behind an electric gate, you don’t need to worry that somebody might attach a tracking device to it while you sleep. But the Constitution doesn’t prefer the rich over the poor; the man who parks his car next to his trailer is entitled to the same privacy and peace of mind as the man whose urban fortress is guarded by the Bel Air Patrol.”
-David Wallechinsky, Noel Brinkerhoff
 
United States v. Juan Pineda-Moreno (Ninth Circuit Court of Appeals) (pdf)
 
U.S. Birth Rate Lowest in History
Monday, August 30, 2010
U.S. Birth Rate Lowest in History

With so many Americans struggling to get by, the United States has experienced a drop in births for the second year in a row, to the lowest level in the nation’s history. The U.S. birth rate fell in 2009 to 13.5 per 1,000 population—a marked decline from 2007 when the rate was 14.3 and more babies were born in the U.S. than any other year in its history. In 1820, the earliest year for which full statistics are available, the birth rate was 55.2 per 1,000 population.

 
“When the economy is bad and people are uncomfortable about their financial future, they tend to postpone having children. We saw that in the Great Depression the 1930s and we’re seeing that in the Great Recession today,” Andrew Cherlin, a sociology professor at Johns Hopkins University, told the Associated Press. “It could take a few years to turn this around.”
 
During the Depression, the U.S. birth rate dropped as low as 18.4 in 1936 and it wasn’t until after World War II that it returned to the level of 1926. More recently, the birth rate peaked at 16.7 in 1990 and it has gone down more or less steadily since then.
-Noel Brinkerhoff, David Wallechinsky
 
Recession May Have Pushed U.S. Birth Rate to New Low (by Marilynn Marchione, Associated Press)
 
Coal Waste Contaminates Water in 21 States
Sunday, August 29, 2010
Coal Waste Contaminates Water in 21 States

While the U.S. Environmental Protection Agency considers whether to impose new federal regulations on coal ash, a new report shows the waste is a bigger problem than previously reported.

 
The study, produced by the Environmental Integrity Project, the Sierra Club and Earthjustice, found there are 39 sites in 21 states where groundwater supplies or surface water have become contaminated by the dumping of coal ash from utility companies. This is in addition to 31 coal waste dumpsites that were identified in a February report. The contamination includes the presence of toxic metals such as arsenic, lead, selenium, cadmium and other pollutants in water supplies used by local residents.
 
The United States uses one billion tons of coal a year to produce about 48% of the nation’s electricity. This production also creates 125 million tons of coal waste, including ash.
 
The EPA will conduct seven hearings around the country before deciding to bring the disposal of coal ash under federal control. Currently, states are left to decide how to regulate the leftovers produced by coal-fired power plants, and the electric power industry wants to keep it that way.
-Noel Brinkerhoff, David Wallechinsky
 
Study of Coal Ash Sites Finds Extensive Water Contamination (by Renee Schoof, McClatchy Newspapers)
In Harm’s Way: Lack of Federal Coal Ash Regulations Endangers Americans and Their Environment (Environmental Integrity Project, Earthjustice and Sierra Club) (pdf)
 
GAO Says Federal Agencies are Too Cozy with Same Old Contractors
Saturday, August 28, 2010
GAO Says Federal Agencies are Too Cozy with Same Old Contractors

Too much of the U.S. government has established a bad habit of doing business again and again with the same contractors, resulting in inefficiencies and lost opportunities to save money. The Government Accountability Office came to this conclusion after reviewing certain trends in noncompetitive contracts that evolved over several years and discovering poor decisions and business practices by federal workers.

 
Forty-four percent of all federal contracts in fiscal year 2009 were not open to competition or attracted only one bid, according to the GAO’s report.
 
In some cases, agencies drafted their contracts so narrowly that it made it difficult for more than one company to compete for the work. At other times, government offices gave additional contracts to businesses because it made things easier, rather than start anew with the biding process and establish new working relationships with different firms.
 
The most common excuse agencies used to avoid competitive bidding was that there was “only one responsible source. The Small Business Administration’s 8(a) Business Development Program also encouraged sole source awards.
 
Another problem exists with Department of Defense weapons contracts because the government does not have access to the technical data of private companies. For this reason, once a company receives a weapons-related contract, it usually retains the contract for the life of the program. The worst offenders in FY 2009 were the Navy and Air Force, with 45% of their contracts being non-competitive.
-Noel Brinkerhoff, David Wallechinsky
 
 
Secret Mobile Body Scanning Vans…Coming to your City?
Friday, August 27, 2010
Secret Mobile Body Scanning Vans…Coming to your City?

If you thought the use of full-body scanners at airports was a violation of personal privacy, just wait. The same technology is now rolling down the streets of American cities in unmarked vans.

 
American Science & Engineering (AS&E), a Massachusetts-based company, has sold U.S. and foreign government agencies more than 500 backscatter x-ray scanners (ZBVs) mounted in vans that allow law enforcement to peer inside nearby vehicles. To date, the biggest buyer in the federal government is the Department of Defense, which has purchased the specially-equipped vehicles for use in Afghanistan and Iraq.
 
But a company executive told Forbes that law enforcement agencies are also using the vans to search for car bombs in the U.S. AS&E, which bills its product as “a non-intrusive inspection technology,” also promotes the vans for use against the smuggling of drugs and humans.
 
In the words of AS&E, “In Stationary Scan Mode, ZBV operators may elect to scan the occupants of the subject vehicle. For this application, AS&E offers a Personnel Scanning option that may better enable the customer to meet any applicable country-specific regulatory requirements.”
 
The Electronic Privacy Information Center (EPIC) is suing the Department of Homeland Security to stop its use of backscatter scanners at airport checkpoints, arguing the equipment’s use is a violation of the fourth amendment. “Without a warrant, the government doesn’t have a right to peer beneath your clothes without probable cause,” Marc Rotenberg, executive director of EPIC, told Forbes. “If the scans can only be used in exceptional cases in airports, the idea that they can be used routinely on city streets is a very hard argument to make.”
-Noel Brinkerhoff
 
Z Backscatter Van™ Mobile Screening System (American Science and Engineering)
 
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